Thursday, December 29, 2011

10 Must-Have items for productivity when trading binary options

The binary options trader in your life needs to have certain gadgets and items around to make his trading day that much easier.

Here are some of the must have items for the binary options trading guy.

First, there are stress bracelets out there that monitor the level of stress the person is feeling.

For a reverse effect, you can purchase the binary options professional a foot massager or a stress ball that alleviates stress.

No trader is complete without a number of wall clocks that monitor the time around the world - and many traders even have one of these on their wrist at all times.

Of course, you can always make sure the binary trading professional has an Android or other high-end phone and they should never be without a subscription to the best finance magazines.

Thursday, December 15, 2011

Got FOREX Discomfort? Try trading binary options instead.

The ways and means of secret sharing and trading are binary and optional
Are you comfortable with FOREX? Do you enjoy seeing how gold prices fluctuate over time? When you start to trade binary options, you should make sure that you've done your homework. What does this mean? If you are already familiar with one type of asset, then this is the asset that you should focus your attention on. If, for instance, you are comfortable with FOREX or with stocks but you know little about gold, then you should put your energy in the area that you know well. If, on the other hand, you really don't know any asset well, then you should spend some time paying attention to a given asset for awhile and see how it fluctuates. This will allow you to make predictions about that asset with more certainty and knowledge, rather than doing so blindly as often happens.

Wednesday, December 7, 2011

Only trade binary options with trusted brands

"We can’t stress this one enough: You MUST trade binary options through a trusted brand with good customer support. The last thing you want is to make a large amount of money and then not be able to get someone on the phone to wire you the funds." -- From Ernie Bell's "Weather Balloons and Binary Options: Academic Definition Sets for Financial Market Traders"


Who helps you with your trades?
Seriously, you're about to put some money into a binary options trading platform that is maintained on the Internet. Do you know enough about the brand to whom you're about to send your deposit? Have you spoken to them on the phone? Do you know how to collect your money? Are they set up to handle your needs? Is your account manager a good and clear communicator? Are your questions being answered well, and in a timely fashion?


The leading platforms for trading binary options all have excellent customer support online and on the phone. For example, OptionsClick.com is famous for calling its customers and traders who are interested in trying them out. Give it a shot. You'll be surprised how fast you hear from them as soon as you fill out their simple contact form. They are experienced enough to hold the hand of the trader throughout the entire process, so that the binary options trader can make the most of the opportunities presented through their platform. And at the same time, they know when a trader is experienced enough not to waste their time going over rudimentary things that are already second-nature to an advanced trader.


In the end, when you're a binary options trading professional, you want to know that the company you trade through is solid. That they've been around. That they understand the markets as well as the tools they make available to their customers.


When you do your homework, you will certainly see that when you want the best, part of that means you want the best human interaction possible. It always helps to have a great team of account managers at your disposal, to answer any questions you may have, and to give you the assurances you need and demand to invest your hard-earned money wisely.

Tuesday, November 29, 2011

What is chump change and what is real revenue when it comes to binary options affiliate programs?

Drawing a Circle In The Sands Of Time
To learn more about the world of binary options affiliate programs, checkout this article I read. It talks about the various facts, risks and rewards of becoming an affiliate of the various binary options trading platforms, which are the latest trend in online financial investing. The key to being a successful affiliate marketer is of course, smart planning, smart action, and smart back office management. Without these elements, it is significantly harder for an affiliate program promoter to succeed at getting new investors to get with the program. Fortunately, there are some affiliate programs that are so well developed, that just about anyone can do well if they just follow the steps and use the tools which the affiliate program offers its members.

Thursday, November 24, 2011

Gold is an option for binary trading

gold commodity
People love having choices in life. Whether it's a choice about where to live, a choice about professions or a choice about which car to buy, it always seems to make people feel good when they are in charge of their decisions. That's one reason that binary option trading is such a popular type of investment model. There are many choices with binary trading and those choices add flexibility and excitement to the process. You can choose the asset you want to trade binary options; you select how much money you want to invest in the binary option process and you decide what you think will happen with the asset in the time frame that has been decided. Each of these decisions allows you to build on what you know and to make educated predictions that will, hopefully, be profitable! Learn more about your choices when you trade binary options so that you can get started soon.

Wednesday, November 16, 2011

Tip for binary options trading

If you're about to enjoy the chance to trade binary options, you should keep a few things in mind. At www.optionsclick.com for instance, there are three main choices you have to make about what will happen with the asset. You can select high/low, meaning that you think the price at expiry will be above the current level (high) or below it (low). You can select Touch/No Touch with binary options trading. This means that you are saying the market will touch the target price before expiry (touch) or that it won't (no touch). Or you can invest based on range which means you think the market price will close within an upper and lower target price (in) or that it will close outside of this price (out).

Tuesday, November 15, 2011

Pop The Cork off the Champagne

The champagne cork popping act is one of clear celebration and rejoice. Trading binary options enables such feelings, specifically after a good day of trading, when some traders have been known to double their principal in a 12-hour day.
Binary Options Trading Sometimes Gives Reason To Celebrate
Not everyone and not everyday is there champagne cork popping scenario, but when trading binary options "brings your ship home" it is time to give it the honor it deserves.  Go to http://optionsclick.com if you want to give binary options trading a try, or simply to learn more.

Sunday, October 30, 2011

Binary Option Abstraction

Abstract of Binary Option Trade
There are many ways to consider and explain what a binary option is, however, an abstract image as the one attached does little in fact with how binary options actually look like. This abstract rendition created by an artist is tantamount to how a binary options appears in the brain, although not based on any science or facts.


Sunday, October 2, 2011

It's 10:00 AM - do you know where your binary options are?

I have been asked time and again about the same question, what are binary options. This is not a difficult question to answer and I'd recommend that you simply look it up online to learn the details. The overall concept with a binary option is that it is a financial instrument that allows you to buy an "option" that has a binary decisional aspect to it. You can choose if the asset will do this-or-that and wager the investment on you best guess or estimation. While some people have a difficult time fully understanding what are binary options, it is critical to play it to fully understand, and that is what I recommend you do to learn about it further.

Monday, September 26, 2011

Binary Options, what are they good for?

As an avid trader of binary options, I often get asked, "What are binary options good for?" - this specific misunderstanding of anything about binary options is where their advantage lies. Because the rest of the world is busy trying to make money while buying/selling regular stocks, it becomes much easier for people who trade in binary options to make money. While stocks offer limited and exact investment returns, binary options have a fixed return that is either received or not. This ability of the binary options allows them to be traded more effectivly, as rather than trying to make a small gain, the trader simply decides if it is a good trade or not, without regard to actual amounts since those don't really effect the profit, other than help secure it.

So to answer the questions, binary options are great for squeezing profit from the market in place that stocks and mutual fund can't.

Monday, September 19, 2011

Maze super spin vortex - binary options trading artwork

Maze of super spin vortex

super-spinny-vortex-illusion-maze
Maze of Binary Options Trader
Maze of a super spinny spinning vortex optical illusion. Created using GIMP on Ubuntu and the most basic geometric tools while also trading binary options at the same time in an effort to do two things at once and perform better on both of them.

Wednesday, September 7, 2011

Circles of Confusion - Drawing by binary options trader

Confusion De Circles
When you think of circles of confusion, the typical response are those circles that you see when someone photographs using a telephoto lens and the background is just a mess of circles that are objects beyond the field of view. These circles of confusion where drawn while I was trading binary options. The problem with trading binary options online is that you can easily get fixated on the elements of the trade that are beyond your control, and the best course of action at that point is to provide your mind with a level of distraction that allows you to still monitor your trades, but does not require your 100% undivided attention.

Tuesday, September 6, 2011

When Clouds Collide - Binary Art - Web Art

"When clouds collide" is the name I gave this one, as I was drawing two clouds and it grew into an overlapping pattern as I was also busy at the same time trading binary options and trying to not think about the losses a few trades earlier. Sometimes your up, sometimes your are down.

Wednesday, August 24, 2011

Goofy looking binary options trading art

I found this artwork in an article about binary options trading
and just thought that it was hilariously funny in a goofy sort of way. This kind of art you just don't see anymore and its very funny that some guy who is trading binary options is also making this art to pass the time. Cool!

Binary Trading is WAY easier now than it might have been in the 1970's



You can download this cartoon of a 1970's style binary options trader at the following links:

Tuesday, August 23, 2011

Tips for binary options trading to make a profit

Get you paws on as much as you can
Top Ten Super-Tips for using the Black-Scholes Valuation formula to gain large profits with online binary options trading:

These tips are called "super-tips" as the regular tips we give are designed for novice traders. These tips are designed for more advanced users who are willing to forego some excitement and risk in exchange for dull, boring, and more consistent profits.

  1. Trade only in small amounts till you have a much stronger grasp on that specific commodity, stock or indice.
  2. Utilize "closable" options to hedge the rise so that you can make very quick 20% to 40% gains rather than drawn out 85% gains that carry a risk of 100% loss.
  3. Be technical analytical and review the graphs for patterns and predictability. Only trade in graphs of options you feel comoftable predicting. 
  4. Better to not trade for a half hour than loose durring that half hour.
  5. Don't hedge your risk by trading in opposing option. The profit of 85% comes at a risk of 100%, so hedging like that will result in an across-the-board 15% loss.
  6. Remember: Its important to avoid losses as much as it is to achieve gains.
  7. Don't let losses or gains effect you overall strategy. Emotion are your enemy in this game. 
  8. With currency related binary trade, compare different currencies to narrow down which ones are actually falling and which ones are only relativity falling
  9. Avoid trading binary options at the beginning of market open unless specific events in the news provide a window of predictability.
  10. Learn from your mistakes. Binary Options Trading is an aquired skill. Don't be afraid to make mistakes, but do avoid repeating them.

 We hope you've enjoyed these tips. Please feel free to leave comments or questions. These tips are based on Trading Binary Options on OptionsClick.com - not sure about any other sites.



Monday, August 22, 2011

Top Ten Reason trading online is better than in-person:

Click and Trade - Online Binary Options Trading
Top Ten List of The Top Reasons that Trading ONLINE is better than In-Person.

Top Ten Reason trading online is better than in-person:

We have all heard and seen the hype about trading online binary options, but we may have forgotten why it is so appealing. This entertaining list reminds us.


Top Ten Reason trading online is better than in-person:

  1. 3 words: Much Shorter Commute
  2. In-person trading: pants mandatory. Online trading: pants optional
  3. Binary trading from home gives you a bit more free time to tan your pasty white thighs.
  4. You can trade your binary options even while you get called in for jury duty.
  5. Less focus on commute, more focus on lunch
  6. Always fun to answer "where do you live? and "where do you work?" questions with an identical reply.
  7. You can't watch TV at the office.
  8. Better trading patterns when you sleep late everyday.
  9. How else are you going to become a binary options trader?
  10. Because you only do online binary options trading so that you don't have to go to work.




We hope you have enjoyed this top ten list. Please visit back regularly to check out the latest news and updates about online binary trading the world around it.





Sunday, August 21, 2011

When will gold pop already?
The higher gold climbs the more intense the debate between bulls and bears, those who think the yellow metal has a long way to run and those who say this is a giant bubble that is going to pop, and soon.Here are five reasons the bears are calling the current run of gold -- up 27 percent since Jan. 1 -- a bubble, and thus something to avoid.

1. Basic economics. The World Gold Council in a recent study said that in the second quarter total global demand for gold declined 17 percent, on a year-over-year basis. But despite that decline the price of gold rose about 25 percent. At some point supply and demand have to come back into balance, say the bears, and when they do it would be best to be out of gold.

2. If it looks like a bubble ... "People believe that gold is a hedge against uncertain times. In the long run, gold prices have kept pace with inflation. People are flocking to it", says Lloyd Thomas, an economics professor at Kansas State University. "But in 2000 the price of gold was $300 an ounce. It has gone up six-fold since then, and it might go up higher than what it is right now. It's gone up too fast -- it's a bubble." 
Thomas compares the current gold market to the U.S. housing market. People believed, as they believe now for gold, that the housing prices would continue to increase. But ultimately, they fell more than 30 percent in most 
American cities.


"The same thing could happen to gold; it's not risk-free. In the last 10 years it's gone up 17 percent a year, but the price of things we purchase has only gone up 3 percent a year. That's unsustainable. It's my own opinion that gold prices will collapse -- I just don't know when", he says.

3. Soros has left the building. Billionaire George Soros as well as Eric Mindich cut their holdings in the SPDR Gold Trust, an exchange-traded fund, in the second quarter as prices rallied. You may not understand algorithms, econometrics or 200-day moving averages, but almost anyone can imitate winners.
Major professional money managers are also starting to get worried. Wells Fargo is warning its clients, including wealthy ones, that gold is grossly overbought, a "bubble that is poised to burst." Said Wells Fargo analyst Dean Junkans: "We have seen the economic damage" of past bubbles and "feel compelled to ring the warning bells."
"There could be substantial risk to gold once the fear that the world is coming to an end subsides," Junkans told Reuters in a telephone interview from Minneapolis. "We are worried about the downward risk."

4. Investor naivete. "Trees don't grow till heaven. I think buyers need to be beware we are in a 'caveat emptor' market," Jeffrey Rhodes, global head of precious metals at INTL FCStone, a brokerage, told Reuters.
"My problem is that people are buying gold and they don't understand why they are buying gold and that's a big problem and that is a classic symptom of a bubble," said Rhodes.

5. What is your pain tolerance? Even if you don't think gold is a bubble, it certainly is a bull market, and bull markets often end dirty and messy, and take years to recover from. Think the U.S. real estate collapse and all the attendant carnage that erupted in 2008 and still hasn't been repaired, among homeowners or bankers. The same could be said of property markets in Ireland and Great Britain.




Want to hedge against the Gold Standard? Try trading binary options.  


Thanks to the source for the article on Gold Ready To Pop

Thursday, August 18, 2011

Why is the price of gold going up so much?

HOUSTON: While many analysts have forecast that gold prices will eventually hit USD 3,000 an ounce, after hitting a record USD 1,800/ounce last week, economic experts at Kansas State University have warned that it is only a matter of time before the bubble bursts.

The huge federal deficit and a deteriorating economy have made many investors fearful of the US economy entering a period of stagnation, driving stock prices downward, said Lloyd Thomas, an economics professor at Kansas State University.

In this period of uncertainty, many are selling stocks and corporate bonds and putting their money into gold.

Recently, gold prices skyrocketed to as high as USD 1,800 an ounce and Thomas said the price might continue to creep higher as economic concerns grow.

"People believe that gold is a hedge against uncertain times," he said.

"In the long run, gold prices have kept pace with inflation. People are flocking to it," he added.

"But in 2000, the price of gold was USD 300 an ounce. It has gone up six-fold since then and it might go up higher than what it is right now. It's gone up too fast -- it's a bubble," he claimed.

Thomas compared his gold prediction to the housing market.

"People were lulled into thinking housing prices could never fall, but they fell more than 30 per cent in most American cities. The same thing could happen to gold; it's not risk-free," he said.

"In the last 10 years it's gone up 17 per cent a year, but the price of things we purchase has only gone up 3 per cent a year. That's unsustainable. It's my own opinion that gold prices will collapse -- I just don't know when," Thomas said. 


Read the full article on The Economic Times

Wednesday, August 17, 2011

Top-Ten Funniest Explanation of What are Binary Options

Hysterical Binary Options Trader
List of Top-Ten Funniest Explanation of Binary Options

Binary options trading is the hottest thing since margin-investing and CDI's - except way more legitimate and totally legal. Not everyone is 100% sure what is a binary option or what it means to trade them. Below are the funniest explanation that we have gotten so far. Enjoy.





 

Top Ten Funniest Explanations of
What are Binary Options:

10) Stocks that perform magic by using confusing math.
9) Commodities that make you money when they loose money

8) Investment instrument that let you pry open the markets value
7) Piggy bank for those that have science degree in math.
6) It is the equivalent of Diet Coke for the investment community, all the fun and no calories.
5) It's that thing them investment-boys are doing these days.
4) I don't know, I can't even figure out how to use Facebook.
3) Is that trading stocks in Morse code?
2) Binary option is when a person trading stocks has to think like a computer.
1)Have no idea what it is, but sure have fun trading them.




Laughing Binary Options Trader






We'd like to thank this site for the top-ten list of funny explanations for What Are Binary Options


trade, online, top ten, funny, hilarious

Sunday, August 14, 2011

Pricing the Binary Options for trading in market.

Binary Option pricing is similar to some extent to vanilla option pricing in that is uses the basics of the Black Scholes pricing model to create a cash or nothing payout profile.  Binary options, or digitals options can also be priced as a asset or nothing type of payout, where the prices of the asset need to be valued prior to the pricing model evaluation.

A binary option has a predefined payoff. For most options the payoff
Binary Option pricing is similar to some extent to vanilla option pricing in that is uses the basics of the Black-Scholes pricing model to create a cash or nothing payout profile.  Binary options, or digitals options can also be priced as a asset or nothing type of payout, where the prices of the asset need to be valued prior to the pricing model evaluation.

A binary option has a predefined payoff. For most options the payoff of an option is unknown and is only known upon exercise of the option, which the payoff for a call option being the asset price on exercised less the strike price of the options. In contrast a digital option has the payoff defined when the option is issued.  For example, the payout is a specific cash value know prior to entering the transaction.

The payoff of a Digital option is preset value (cash amount -as in a Cash-or-Nothing option) or a unit of the underlying option (ie an Asset-or-Nothing option). For example a Cash-or-Nothing option on a stock would either payoff zero or a fixed cash at expiry, similar an Asset-or-Nothing option would either payoff zero or a fixed number of stocks.

In pricing a binary option, there are a number of variables that need to be used, similar to a vanilla options.  These variables include:

Market Price :

The market price of the underlying asset on the valuation date.  When evaluating an option in real-time, a trader would used the current underlying price to determine the current market price.  Traders could also use the closing price of the prior day to gauge an estimate of the market price.

Strike Price :

This is the price level at which the option holder has the right to buy or sell the underlying asset. It is the most straightforward input as it will always be given in the option contract.  In general, the market price in a binary option is also the strike price.  In a “above or below” option, the market price is the price that is used to determine the strike price.

Time to Maturity :

The time until the option expires and the holder is no longer entitled to exercise the option.  For binary options, this is usually the end of the day or the week, as well as a specific time in terms of hours.

Interest Rate :

The risk free interest rate for the period until the option expires. The risk free rate should typically be a zero coupon government bond yield.  For example the risk free rate for the US is current less than 25 basis points or very close to zero.  This factor will not change the value of a binary option since most are very short dated.

Volatility :

Albert Einstein Understood Binary Decision Making.
Volatility is probably the most important single input to any option pricing model. There are numerous methods for estimating volatility.
Historic volatility entails using historic price data for share price movements. A key issue is how far into the past to collect data from. A useful rule of thumb is to collect data from as far back as the options term. Historic volatility is often considered as flawed as it assumes the past will reflect the future – thus several forward-looking measures of volatility can be more powerful and accurate:
Historic Volatility is the volatility of an asset based on its past price movements. The volatility of the underlying asset for the option’s remaining life is a key input into most option pricing models, however this volatility is never in practice observable since it is based on future price movements which cannot be known. Thus, volatility must be forecast, and one method of forecast is to use the historic volatility of the asset which is calculated from its past price movements.
Typically, daily data is used and the standard deviation of the daily log of price movements is the volatility. If daily data is used then a daily volatility is the output from a calculation. For input into an option pricing model such as Black Scholes the annualized volatility is required.
Implied Volatility is the volatility implied by the market price of traded options. As the price is already known and the volatility (which is typically an input) is unknown the pricing model is reversed to determine the volatility. Other models such as ARCH, EWMA, GARCH use historic data and condition the data using factors such as mean reversion to achieve a more accurate volatility forecast.
Implied Volatility is the volatility derived from an option with a known price (or premium). If the price of an option is known, the other inputs (such as spot, strike, time etc) can be either taken from the option contract or market data sources, thus the only remaining unknown input – the volatility  can be solved for. The Black Scholes option pricing formula cannot be reversed to express volatility in terms of other inputs so an iterative approach is required by testing different volatilities.
Binary Code looks like this

Yield :

The average yield generated by the underlying asset for the life of the option. This can be either a dividend or the income generated by a commodity. It is often difficult to forecast the yield for the entire option life so the current yield of the asset is often used.

Conclusion

Binary options are generally priced in a way were the dealer or broker is taking a fee in the theoretical price of the option.  There are numerous tools that can be used to determine if the price of a binary option is relatively fair, and if your broker or dealer is given you a realistic market price.

Thursday, August 11, 2011

NHS faces growing financial pressure, how it effect GBP

NHS faces growing financial pressure, how it effect GBP

by 99binaryoptions on August 11, 2011
The NHS has an uncertain future. What does that have an effect on the Great British Pound (GBP) and other currency markets. Keep these
Citizens Band Radio Binary Trader SELL SELL SELL
Sell, Sell Sell 10-4 Charlie
details in mind when trading currency or placing positions on when trading binary options online.  The main thing to remember is that the uncertainty means that it can rally one day, or dive the next, however, elements like the trading volume and speculation buying can help the stats go awry in regards to where the market really stands.
Here is the article, you can read it in full at this link    Thanks to Binary Options Blog for posting this and sharing.

Audit Commission finds NHS made £4.3bn of efficiency savings last year but financial challenges are increasing
Most NHS organisations have made good progress in cutting costs to reach the £20bn savings required of them, but they face growing financial pressure, according to the Audit Commission.
In its report on the 2010-11 financial accounts of primary care trusts (PCTs), NHS trusts and strategic health authorities, the commission says that, assuming there is no double counting, efficiency savings totalled £4.3bn for the year.
PCTs reported savings of £1.9bn and NHS trusts reported savings of £1.2bn. These figures are equival
ent to 1.9% of PCTs’ gross operating costs and 4.3% in the case of NHS trusts. Regulator Monitor reported that the percentage for foundations trusts was slightly lower at 3.9%, which equates to £1.2bn.
The NHS in England needs to save an average of £5bn, equivalent to about 5% of their budgets, every year until 2015 to release £20bn of efficiency savings.
The document warns that financial pressure is increasing. Nearly 25% of the money saved so far came from one-off or non-recurrent savings, mostly improving clinical productivity and reducing workforce costs.
In addition, the need to deliver high-quality services without the funding growth of the recent past will have an impact. In 2010-11 PCTs received average cash funding increases of 5.5%, but in 2011-12 this is only 2.2%.
The document says NHS organisations will require determined effort and strong leadership to make further efficiency savings, and to continue to do so for four years.
Overall, the commission found that the financial performance of the NHS continues to be good, and that organisations reported a surplus of £1.5bn, or some 1.5% of NHS resources. Only nine out of 276 organisations failed to balance their books.
NHS Confederation deputy director of policy Jo Webber said many NHS leaders have got their organisations on a strong financial footing, but are worried that “this might be the calm before the storm”.

Some common info on what are binary options:

Binary option (From Wikipedia)

In finance, a binary option is a type of option where the payoff is either some fixed amount of some asset or nothing at all. The two main types of binary options are the cash-or-nothing binary option and the asset-or-nothing binary option. The cash-or-nothing binary option pays some fixed amount of cash if the option expires in-the-money while the asset-or-nothing pays the value of the underlying security. Thus, the options are binary in nature because there are only two possible outcomes. They are also called all-or-nothing options, digital options (more common in forex/interest rate markets), and Fixed Return Options (FROs) (on the American Stock Exchange). Binary options are usually European-styleoptions.
For example, a purchase is made of a binary cash-or-nothing call option on XYZ Corp's stock struck at $100 with a binary payoff of $1000. Then, if at the future maturity date, the stock is trading at or above $100, $1000 is received. If its stock is trading below $100, nothing is received.
In the popular Black-Scholes model, the value of a digital option can be expressed in terms of the cumulative normal distribution function.
Click here to read the full Wikipedia article on Binary Options




A binary option is aBinary Options Trader - Worried and stressed fixed return option because there are only 2 possible outcomes which are fully realized at the onset of the contract
A binary option is a contract which gives the buyer (known as the owner) the right, but not the obligation, to buy an underlying asset at a fixed price within a specified time frame.
The items being traded are known as underlying assets and they could be a range of products: currencies (e.g. USD/JPY), commodities (e.g. Oil, Gold), stocks (e.g. Microsoft, Coca Cola) or indices (e.g. Nasdaq, FTSE 100). The fixed price at which the owner buys or sells at, is known as the strike price.
When trading binary options, the buyer of the option chooses whether he thinks the underlying asset will hit the strike price by the selected expiry time – this could be at the end of the nearest hour or the end of the day, week or month.
The owner places a call option on his binary option trade if he thinks that at the expiry time the option will be higher than the current price. He places a put option if he thinks that at the expiry time the option will be lower than the current price.

Want to try and trade binary options on your own, visit http://optionsclick.com

Thank you to this source for the info on Binary Options

Wednesday, August 10, 2011

Federal Reservce makes promise to keep interest rates near zero

I came across this article today, I really wonder if the US Gov't will keep the interest rates "near zero" for the duration of time that they claim to do so, which is 2 years, and, if they go back on their word, what will that do to their rating?

WASHINGTON (Reuters) - The U.S. Federal Reserve, in an unprecedented move, said on Tuesday it will keep interemoney, markets, federal, reserve, standard, poor, downgradest rates near zero for at least two more years and is considering further action, bolstering battered stock markets.
The Fed's policysetting Federal Open Market Committee, in a 7-3 vote, overcame internal discord in the first triple dissent against a policy decision since 1992.
Investors were still unsure whether the Fed's even stronger promise to maintain rates at rock-bottom lows until mid-2013 would be enough to revive a flagging economic recovery.
 But the decision sparked a rally in equities that pushed the Dow Jones industrial average up more than 400 points. Short-term Treasury yields fell to all-time lows. The gains came after a rout that stemmed from Standard & Poor's historic downgrade of U.S. credit quality last Friday.
  Click here to read the full article on Money Control
Thanks to this article for the source

Tuesday, August 9, 2011

Jobs Data Shows Growth, US Credit Rating Slashed by S&P

Equities

Wall Street’s Thursday woes led to a steep drop in Asian markets on Friday. The Nikkei fell 3.7% to 9305, and similarly, the Kospi dropped 3.7%. Oil-related stocks were hit hard, following a steep drop in crude oil. Australia’s ASX 200 tumbled 4% to a 2-year low, and the Hang Seng shed 4.3%. China’s Shanghai Composite fared better than most, losing just 2.2%.
European markets extended their losses, as the FTSE fell 2.7%, the DAX dropped 2.8% and the CAC40 decline 1.3%. The oil and gas sector fell 3.4% on concerns about economic growth, and Royal Bank of Scotland tumbled 6.9% after reporting a loss of $1.1 billion.
US stocks swung wildly, as the market digested an upbeat jobs report. The Dow initially opened up more than 170 points, and from that point dropped more than 420 points before reversing to close up 61 points. The S&P 500 closed down .7% and the Nasdaq ended with a loss of .9%. For the week, the S&P 500 fell 7.2% and the Nasdaq dropped 8.1%, their steepest losses since November 2008.
Binary Daily Analysis
Dow Swings more than 400 Points
The Crashing Trader
Priceline shares jumped 9% on strong earnings which beat forecasts.

Treasuries and Commodities

After the close, S&P cut the US credit rating to AA+ from AAA, a move the White House labeled hasty.
Treasuries sold off, as rumors of the credit cut weighed on fixed income. 10-year notes fell 1 12/32 to yield 2.56%, and 30-year notes plunged 3 11/32 to yield 3.85%.
Gasoline futures jumped 2.5% to 2.8052, while crude oil inched up .3% to 86.88, recovering from an earlier drop down to 82.87
Metals continued to decline, as silver fell 3.1% to 38.21, gold dropped 7.20 to 1651.80, and copper lost 2.8% to 4.117.

Currencies

The Euro surged 1.4% to 1.4290 as Italy announced steps to react to the country’s debt woes. The Pound gained .8% 1.6391, and the Yen advanced 1% to 78.42, while the Swiss Franc and Canadian Dollar closed little changed.

Economic Outlook

Big Ol' Dollar Sign, USD
Non-farm payroll data showed the US economy gained 117K jobs in July, far better than the 89K forecast, and the unemployment rate dipped to 9.1%. This was the first upbeat jobs report since April.
Consumer Credit jumped 7.7% in June, a positive sign of consumer confidence.


An emergency meeting was held over the weekend between global financial officials, to address the debt troubles facing the US and Europe.

Monday, August 1, 2011

Are Binary Options like gambling?

Are binary options like gambling?

 

I have heard several times from people that when you are buying and selling Binary Options, your are basically gambling. While this maze be the case for some people who have addiction issues, they are both quite different. 
Casino games are based on luck and binary trading is based on real market conditions. This is not to say that casino's don't also involve skill or that binary trading doesn't experience luck, but the basis for the trades and exchanges of the two are very different. 


The thing is that casino games are designed for users to win in order to keep them entertained and binary trading are based on which ever direction the market swings, So not sure which one is better.